The labor-supply elasticity and borrowing constraints: Why estimates are biased
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Artificial data: The Matlab code generating the artificial data is available upon request (it is currently a mess - possibly the authors will eventually find time and spirit to clean it up and put the code here).About:
This article is published in Review of Economic Dynamics.The article was published on 2006-04-01 and is currently open access. It has received 420 citations till now. The article focuses on the topics: Wealth elasticity of demand & Price elasticity of supply.read more
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The Effects of Health, Wealth, and Wages on Labour Supply and Retirement Behaviour
TL;DR: In this paper, a life cycle model of labour supply, retirement, and savings behavior in which future health status and wages are uncertain is presented, and the model establishes that the tax structure of the Social Security system and pensions are key determinants of the high observed job exit rates at ages 62 and 65.
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Taxing Capital? Not a Bad Idea after All!
TL;DR: In this article, the authors quantitatively characterize the optimal capital and labor income tax in an overlapping generations model with idiosyncratic, uninsurable income shocks, where households also differ permanently with respect to their ability to generate income.
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Taxing Capital? Not a Bad Idea after All!
TL;DR: In this paper, the authors quantitatively characterize the optimal capital and labor income tax in an overlapping generations model with idiosyncratic, uninsurable income shocks and permanent productivity difierences of households.
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The Macroeconomic Implications of Rising Wage Inequality in the United States
TL;DR: The authors explored the quantitative and welfare implications of these changes and proposed an incomplete-markets life cycle model in which individuals choose education, intra-family time allocation, and savings, given the observed history of the U.S. wage structure.
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Consumption inequality and family labor supply
TL;DR: In this article, the authors examine the link between wage and consumption inequality using a life-cycle model incorporating consumption and family labor supply decisions, and derive analytical expressions for the dynamics of consumption, hours and earnings of two earners in the presence of correlated wage shocks, nonseparability, progressive taxation, and asset accumulation.
References
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Uninsured Idiosyncratic Risk and Aggregate Saving
TL;DR: In this article, the authors present a qualitative and quantitative analysis of the standard growth model modified to include precautionary saving motives and liquidity constraints, and address the impact on the aggregate saving rate, the importance of asset trading to individuals, and the relative inequality of wealth and income distributions.
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Consumption and Liquidity Constraints: An Empirical Investigation
TL;DR: In this article, the authors test the permanent income hypothesis against the alternative hypothesis that consumers optimize subject to a well-specified sequence of borrowing constraints, and the results generally support the hypothesis that an inability to borrow against future labor income affects the consumption of a significant portion of the population.
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Saving and Liquidity Constraints
TL;DR: In this paper, the authors consider the problem of saving when consumers are not permitted to borrow, and the ability of such a theory to account for some of the stylized facts of saving behavior.
ReportDOI
Saving and liquidity constraints
TL;DR: In this article, the authors discuss the theory of saving when consumers are not permitted to borrow, and the ability of such a theory to account for some of the stylized facts of saving behavior.
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The risk-free rate in heterogeneous-agent incomplete-insurance economies
TL;DR: In this paper, the authors construct an economy where agents experience uninsurable idiosyncratic endowment shocks and smooth consumption by holding a risk-free asset, and calibrate the economy and characterize equilibria computationally.